Bank loans are considered demanded offers of banks. They can be issued for different purposes, but consumer loans are considered the most popular, for which borrowers receive different amounts of funds in their hands. They can use this money for any purpose, without reporting to the lender about where the funds go. It is quite simple to get money on credit at the bank, but if a person has no official work or a credit history is damaged, then he may encounter some difficulties. It is important to understand what interest calculation scheme is used, how interest is calculated, what is the size of the monthly payment, and also what are the nuances of early repayment of the loan.
Legislative regulation
The procedure for issuing cash to borrowers is regulated by numerous legislative acts. The main law that banks, MFIs and other credit organizations are guided by is Federal Law No. 353 “On Consumer Credit”. The credit sphere of activity is fully regulated by the provisions of the Civil Code.
The state establishes the procedure on the basis of which borrowed funds are issued. Interest rates applied by banks are regulated, which cannot exceed a certain maximum value.
Federal Law No. 151 “On Microfinance Organizations” governs the rules of MFIs. The law states that such firms can only issue loans in the amount of up to 1 million rubles. to one borrower. In 2018, additional changes were introduced that affected the accrual of a penalty for late payments by the borrower. MFIs can only charge fines for the rest of the loan amount. The total amount of the penalty shall not exceed double the size of the residual debt.
Where can I get a loan?
Most often, citizens prefer to receive money on credit at the bank. You can choose for this different banking organizations offering their own unique conditions. Some institutions conduct special promotions, on the basis of which they offer favorable credit conditions.
But you can take money on credit not only at the bank, as there are other ways to get funds:
- appeal to microfinance organizations offering small amounts of money for a short period at high interest rates;
- use of private lenders;
- exchange of property for money in pawnshops.
Each method has both pros and cons, but it is most beneficial for citizens to borrow money from a bank.
Pros of contacting a bank
Getting a loan at a banking institution has many undeniable advantages. These include:
- all conditions are clearly specified in the loan agreement;
- there is no opportunity to face scammers;
- affordable interest rates are used;
- monthly payments are calculated based on the citizen's income per month.
The risk of large debts is minimized, as the actions of banks are aimed at ensuring that the borrower can easily cope with the loan load.
How to choose a bank?
There are many lending institutions in Russia, so commercial banks, pawnshops and government organizations offer money on credit. When choosing a specific option, some recommendations are taken into account:
- the bank’s reputation is being studied, for which its rating, statistics and feedback from borrowers are evaluated, which allows us to verify the honesty of the institution;
- credit conditions are studied in detail, for which you need to read the loan agreement to make sure there are no hidden fees or other negative consequences of concluding such a contract;
- It is advisable to view the financial statements of the bank, which should be located in an open form on its official website in order to check whether it is at the bankruptcy stage.
As soon as a suitable bank is selected, all available loan programs are studied. Everyone wants to take money on credit in cash at a bank, so you should choose the most optimal program. For this, it is taken into account for what purposes it is necessary to receive money, what is the income of the potential borrower, and also for how long the funds will be issued.
What are the requirements for borrowers?
In any bank, you can borrow money only on condition that the borrower exactly meets the requirements of the banking organization. Most often they are as follows:
- the presence of a constant and sufficiently high income, since the size of the loan payment cannot exceed 60% of the citizen’s monthly cash receipts;
- official employment, and the length of service cannot be less than six months;
- only adult citizens can receive money;
- a good credit history is considered a significant factor, since if a person previously issued loans that he did not repay on time, this leads to the inclusion of information about the non-payer in the BCI, which can be obtained by any bank employee;
- lack of other outstanding loans.
Often, a really large loan amount is required, and in this case, institutions require additional collateral. Money on credit at the bank is issued in large amounts only if there is a guarantee or property transferred by the borrower as a pledge.
What documents are required?
Each bank independently develops the rules and conditions on which loans are issued. For this, documentation is usually required from borrowers:
- passport of a citizen;
- certificate 2-NDFL issued at the place of work of the potential borrower;
- copy of the work book;
- INN
Additionally, banks may require other documentation, if necessary. If a citizen refuses to bring certain securities, the bank may simply refuse to issue a loan amount. If property is pledged, documents of title for this object are prepared. If a surety is involved, then his passport and income certificate are required.
Favorable offers of banks
If a citizen urgently needs a certain amount of money, then he thinks about which bank to take a loan in cash in. Loans on favorable terms are offered by many modern banks. At the same time, interest rates, loan terms and other parameters may vary significantly. It is advisable to take loans with favorable conditions, so it is advisable to focus on the following proposals:
- Money on credit at the Post Bank. The interest rate starts at 12.9%. Funds up to 1 million rubles are offered on credit. for up to 5 years. The decision is made in just a minute. For pensioners, reduced rates are offered. Not too stringent requirements are imposed on borrowers; therefore, it is quite easy to get money on credit at the Post Bank.
- VTB 24. This bank is large and reliable. He offers loans up to 3 million rubles. for a period of six months to 15 years at a rate of up to 16%. The borrower must be over 21 years old to receive such a loan.
- Raiffeisenbank. Amounts from 90 thousand rubles are provided. up to 2 million rubles. for any purpose. The loan term may not exceed 5 years. The interest rate starts at 12.9%.
- Russian Agricultural Bank. A loan of up to 1 million rubles is proposed. for up to five years. The interest rate starts at 12.9%. An adult with a verified income may become a borrower.
It is advisable to submit applications to several banks at once in order to increase the likelihood of obtaining approval. After that, the option of lending is selected that will be most beneficial for the borrower. If banks do not give credit, where to get the money? Under such conditions, you can go to pawnshops or MFIs, but you should be prepared for high interest rates and a short loan term.
Interest accrual schemes
Before applying for a loan, it is recommended that you understand the interest calculation schemes. Interest is calculated from the moment of signing the loan agreement.
Credit organizations offer their customers two methods of calculating interest:
- annuity payments;
- differentiated.
Any loan agreement will indicate the interest calculation scheme. Based on this information, each potential borrower can calculate interest to determine how profitable it is to borrow money in cash from a bank.
Differentiated payments
Such a scheme is considered classic. When using it, the entire amount of the loan is distributed in equal parts, but interest is paid unevenly. Every month in the prescribed period, the borrower must pay the required amount of funds, including the main debt and interest.
After the payment is made, the loan debt decreases. At the beginning of lending, payments will be the highest. Over time, the installment will decrease while reducing the balance of the main debt. Additionally, the amount of interest is reduced.
When choosing this method of interest calculation, strict discipline must be observed by borrowers. With such a scheme, the bank gives money on credit quite rarely, since often clients are not ready for significant payments at the very beginning of the loan term. If the borrower is confident that he will cope with the high credit load within a few months, then he can safely choose this scheme, which is considered to be advantageous in comparison with annuity payments.
Differentiated payments are offered exclusively to solvent customers. If the citizen’s income is not enough to repay the loan, according to the employees of the credit institution, he will not be able to get money on credit at the bank.
Such a scheme is suitable for borrowers receiving unstable income and wanting to reduce the size of payments in the future.
Pros and cons of differentiated payments
Using this scheme has several advantages:
- borrowers easily determine the balance of debt;
- loan overpayment is much lower than with annuity payments;
- if early repayment is planned, then interest can be significantly reduced.
The disadvantages of this choice include the fact that taking money on credit at the bank under such conditions is possible only with high solvency and a good official salary. At the beginning of the loan term, borrowers are faced with a significant credit load.
Annuity Payments
They are most often offered by different banks, since for credit organizations this interest calculation scheme is considered the most profitable. It establishes the same monthly payments that are not changeable over time.
If an early repayment is planned, the client can independently choose whether the loan term or the size of the monthly payment will be reduced. The choice of this method of calculating interest is considered ideal for citizens receiving a stable income. Typically, annuity payments are applied when applying for a large loan.
Pros and cons of annuity payments
When choosing this method of calculating interest, the borrower can initially decide whether he will be able to cope with a specific credit load that does not change during the entire loan term.
The downside is the high overpayment, which is considered a negative point for people who want to save their finances. Banks offer money on credit on their own terms, so they usually do not give borrowers the opportunity to choose the appropriate interest calculation scheme.
How is a loan issued?
The procedure for obtaining borrowed funds from banks may vary slightly in different institutions. By default, it involves the implementation of several stages by potential borrowers who want to get money on credit at the bank. You can apply for a loan by following these steps:
- a bank and an optimal loan program are selected;
- an application is drawn up by the borrower;
- it is transferred to the bank together with other required documents;
- the application is considered by bank employees who additionally evaluate the solvency and credit history of the citizen;
- if the decision is positive, a loan agreement is drawn up and signed;
- funds are issued to the borrower, and they can be provided in cash or transferred to a bank account;
- the citizen manages the funds at his discretion;
- Based on the provisions of the loan agreement, he must repay the loan monthly.
At the time of making the decision, various official incomes of citizens are assessed, which include not only salary, but also scholarships, pensions or various benefits. Banks issue money on credit only with confidence in the solvency of the client.
Prepayment
Banks do not have the right to refuse borrowers the opportunity to repay the loan ahead of schedule. Therefore, citizens can deposit funds ahead of schedule at any time. To do this, follow these steps:
- an application is submitted to the bank for early repayment, which indicates whether the monthly payment will be reduced or the loan term will be reduced;
- on the day the funds are debited from the account, the amount indicated in the application should be put on it;
- if the required amount is not available on the account at the appointed time, then early debiting will not occur;
- if the money is successfully debited, the bank employees will recalculate.
The borrower can get a new payment schedule at the bank branch.
Nuances of loan repayment
After receiving borrowed funds from the bank, the borrower receives a loan agreement and a payment schedule. Based on the schedule, it is required to repay the loan, for which a special account is usually opened, from where the required amount of funds is debited by the bank at the appointed time. Additionally, customers can independently deposit money on a loan in various ways:
- cash transfer to bank employees in the institution’s branches;
- use of online banking;
- transferring funds using terminals, for which it is important to correctly enter the payment details;
- depositing money through mail, Svyaznoy or other payment services.
The funds will have to be paid until the loan is fully repaid. Banks issue money on credit if the borrower meets certain requirements. If he violates the terms of the loan agreement, then different measures of influence may be applied to him.
The consequences of non-payment of a loan
If, for various reasons, borrowers cannot repay the loan, then this leads to numerous negative consequences. These include:
- banks charge significant fines and penalties;
- if the delay exceeds three months, the institutions apply to the court for the forced collection of funds;
- by a court decision, enforcement proceedings are instituted by the bailiffs, which leads to the fact that they can seize the accounts or property of the debtor, limit the ability to cross the border or use other methods of influence;
- information about the non-payer is transmitted to the BCI, therefore, the citizen has a damaged credit history, which does not allow in the future to count on good credit conditions.
Therefore, before applying to any bank for borrowed funds, it is recommended that you carefully evaluate your financial situation. The loan burden should not be too high, so payments should not exceed 40% of family income. Only with a responsible attitude to your obligations under the loan agreement can you count on good offers from banks in the future.
Conclusion
Many banks offer citizens the opportunity to get money on credit. Before receiving the borrowed amount, you should correctly choose the banking institution itself and the specific loan program. The borrower must understand the interest calculation scheme and loan repayment options.
If payments are not made on time, this will lead to the calculation of fines and damage to the credit history. Therefore, each borrower must first carefully evaluate the possibility of obtaining a loan.